Mac d manendra shukla

Presented by-:

Manendra Shukla

OPERATION

HUMAN RESOURCE

MARKETING

FINANCE

Introduction

Key Employees

Andy McKennaChairman

Jim SkinnerChief Executive Officer

Ralph AlvarezPresident and Chief Operating Officer

Susan E. ArnoldPresident – Global Business Units

Gloria Santonacorporate secretary

Amit Jatia(West & South)

Vikram bakshiNorth & east

DICK & MAC MCDONALDS

Our vision to be world’s "best" quick service restaurant.

1940McDonalds’ Bar-B-Que

1948

McDonalds' as “SELF SERVICE DRIVE IN RESTAURANT”

MCDONALDS’ world famous FRENCH FRIES

1949

1954

1955

1956

Quality Value

Cleanliness

Service

1961

Hamburger university opens

1964

1966

First network TV advertisement “MCDONALD’S-WHERE QUALITY STARTS FRESH

EVERYDAY”

1966

1967

McDonalds goes international

1969

Golden arches updated

Hamburglar

Grimace

Mayor Cheese

Captain Crook

1971

Ronalds new friend

1974

1978

5000th restaurant

197 9

Happy meal debuts

1983

McDonalds in 32 countries

1984

Ray Kroc passes away

1987

Fresh salads added

1988

Fortune magazine names McDonald's hamburgers among the 100 products America makes best

1992

Warsaw location

199 6

McDonald .com launch

2008

Global packaging redesigned

Relaxed in Recession One of the most successful big companies during recession.

Mac Donald's sales increased by 6.8% in U.S, 4% in Europe and 4.1 % in Asia , middle east and Africa .

Mcdonald's was one of only two dow jones industrial Average stocks that ended 2008 with a gain.

Pundits say the company to be recession proof and that people will come due to its ease on the pocket menu.

Inspite of the fluctuations in the prices of the agro products ,the prices of Mac donald’s products remained constant.

2009

Philosophy

"We take the burger business more seriously than anyone else."

As of December 31, 2008, the company operated

31,967 restaurants in 118 countries,

25,465 were operated by franchisees;

6,502 were operated by the company.

50 million customers each day

$25.00billion -brand value

2004 -worlds biggest marketer of fast food

Fascinating McFacts

Earning love and respect of

Reasons for coming to India

132 restaurants in India(79 are in North & East India and 53 in West & South India)

2.5 lakh customers visit McDonald's TM every day

At McDonald’s India we have had a single mantra: providing 100% total customer satisfaction

McDonald’s in India is a 50-50 joint venture partnership between Amit Jatia’s (Western ) & Vikram Bakshi (Northern)

79 restaurants in North & East India:

33 Delhi

22 Uttar Pradesh Noida (5), Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2), Meerut (2), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)

11 Haryana Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (5), Karnal (1) (Highway and Drive - Thru), Panipat (1)

7 Punjab Chandigarh (2), Ludhiana (2), Doraha (1) (Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)

3 Rajasthan Jaipur (3)

1 Uttaranchal Dehradun (1)

1 West Bengal Kolkata (1)

1 Himachal Pradesh Jabli (1).

53 restaurants in West & South India

32 Maharashtra Mumbai (23), Pune (8), Nasik (1)

7 Gujarat Ahmedabad (4), Vadodara (2), Surat (1)

7 Karnataka Bangalore(7)

4 Andhra Pradesh Hyderabad (4)

3 Madhya Pradesh Indore (3)

ENTRY STRATEGIESWholly owned subsidiary-MIPL

Incorporated in 1993

Trained extensively along with their Indian management team, in McDonalds in Indonesia and US before launch.

Changes: to establish in India successfully• Size• Taste• Menu(75 %localized menu,33%asian countries &other countries

<5%)

Product adaption - the Indian challenge

Maharaja Mac replaced Big Mac, Chicken Patty instead of beef

McAloo Burger, Veg Salad Sandwich, McMasala & Mcimli Sauces

Garlic free sauces to get in “hard core” vegetarian customers

40%vegetarian-vegetarian selections to suit Indian taste

OPERATIONS

Front office operational process

Operation Transportation

InspectionDelay

Storage

Process Name Operation Transportation Inspection Delay

Operator taking the order

Work order wait in queue

Cashier complete transaction

Job carried to appropriate provider

Inspect the job item are placed or not

Order/job is picked by customer

Job is guided to the table

Job moves to table

Assistant always monitoring the job

Cleaning the table for the next job

Cleaning the floor

Supervising the whole process

PROCESS DESCRIPTION

SUPPLY CHAIN

MANAGMENT

SUPPLY CHAIN

OVERVIEW COLD CHAIN

LOCAL SOURCING

SUPPLIERS

RESTAURANT MANAGEMENT SYSTEM (RMS)

2 SEPARATE MENUS-GREEN- VEG;PURPLE –NONVEG

Separate Veg & Non Veg kitchen

Different uniform for kitchen crew to distinguish role

Clear segregation-kitchen staff

Printed broacher of RMS to customer

Customer kitchen tour to assure

Human Resource

Management

Co-ordination

Co-operation

Communication

 Respect and Recognition 

Values and Behaviours 

Competitive Pay and Benefits 

Resources To Get The Job Done 

Training, Learning, Development and Personal Growth 

Five People Principles

Hire restaurant crews with good work habits and courteous attitudes

Proper training a delivering customer satisfaction

Employees receive work experience that teaches skills and values

Perfect tools provided

Training, Learning, Development and Personal Growth

Employees at McDonalds' fall into 3 different categories

JOB STRUCTURE

RESTAURANT WORKERS

CORPORATE STAFF

FRANCHISEE OWNERS

  MAC Card (McDonald's Gold Card membership) Haircut Discounts Wages increases

  Life insurance Stock Purchase Plan  McDirect Shares

  Paid Vacation   Bonus Scheme Education Support

Extracurricular Crew activities Scholarship Program Opportunities for advancement   

BENEFITS

Function Of Human Resource

Planning

Leading

Organizing

Controlling

Human Resource

Policy

Growth opportunity

CompensationOffer wage rates that are equitable and non-discriminatory in every location

Competitive Compensation

Reward both individual and team performance

Motivation

Career opportunity

Create career opportunities;

Have flexible work hours for student employees.

"Learn while you earn" 

“employee of the month “.

Giving them responsibility.

Marketing strategy

McStrategies

PastProduct DevelopmentMarket DevelopmentForward IntegrationJoint Venture: Franchisees

NewProduct Development: Focus on core businessJoint Venture (Franchisee): Change methods of dealing with franchisees

Market Penetration and Development

Horizontal Integration

StrengthsBrand Recognition

Leader in Quick Service Sandwich Industry

Strongest International Presence

Real-Estate Holdings

Variety Sources of Income

Franchise Business Model

Cost advantage

Market versatility

Weak product development

Dissatisfied franchisee

Value/Premium Items

Slow revenue and income growth

Weaknesses

Opportunities

Only serving 1% of worlds population

Growth in Global Food Service Industry

Initial Public Offerings in Other Countries

Acquisition of Other Restaurants

Retail Sales of Merchandises

Growing dining-out market

Threats

Increased Competition from Various Industries

Health Conscious Consumer Trend

Value-Conscious Consumer Trend

Saturation in fast-food Market

Slow Growth in Sandwich Segment

Price War Business Practices

Changing demography

Demographically :- 1] young family (<30years) 2]Urban upper & Middle class families.

Geographically :- 1]Mostly in urban towns and cities 2]Now opening in 2 and 3 tiers cities 3]Mostly situated in malls having independent franchises

Psychographic:- 1]Place to chill out with friends and families 2]Place for enjoyment of the kids

Segmentation

POSITIONING

MacDonald mein hain kuch baath-a place for an entire family to enjoy.

Mac Donald I’m lovin it.

DIFFERENTIATION

Highlighting Brand, Food & Variety.

Target market

Only < 10% population possible target market

Phase III

Phase II

Phase I

Product

Promotion

Place

$ Price

4 Ps 3 Ps

People

Process

Physical Evidence

Product Variation: Variety in products ranging from Burgers to softies

Product Innovation: Adapting to Indian conditions creating the “CHICKEN MAHARAJA”

Product Elimination: Removal of Beef flavored products

Menu: Veg, Non Veg, Frozen Desserts, Beverages

Successes: Fries, Happy Meal, Big Mac, paneer wrap , Pizza McPuffFailures:, Fajita, Carrot Sticks, McLean, and the Arch Deluxe

Product

Pricing includes the list of prices & discount available

Special offer such as happy meal ,Value meal & Combo meal.

Price

Fully owned outlets

Franchise owned outlets that does selling from different places

McDonald's mainly consists of the distribution channels the product is available to the customer at the right place, at the right time and in the right quantity

Offers hygienic environment good ambience and great service

Started giving internet facilities

Areas for children where they can play and enjoy with their Family and friends

Spend some quality time together

Place

Individual communication

Mass communication

Free distribution of children toys.

Some of the most famous marketing campaigns of McDonald’s are:

•“You Deserve a break today, so get up and get away- To McDonald’s”

• “Aap ke zamane mein ,baap ke zamane ke daam”.

•“Food, Folks, and Fun”

•“I’m loving it”.

Promotion

A History of McDonald's Advertising Themes 

McDonald's is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975)

Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun (1975)

You, You're The One (1976) Nobody Can Do It Like McDonald's Can (1979) Renewed: You Deserve a Break Today (1980 & 1981)

Nobody Makes Your Day Like McDonald's Can (1981) McDonald's and You (1983) It's a Good Time for the Great Taste of McDonald's (1984) Good Time, Great Taste, That's Why This is My Place (1988) Food, Folks and Fun (1990) McDonald's Today (1991) What You Want is What You Get (1992) Have you Had your Break Today? (1995) My McDonald's (1997) Did Somebody Say McDonald's (1997) We Love to See You Smile (2000) There's a little McDonald's in Everyone (2001) - Canada Only

i'm lovin' it (2003)

"Speedee”

to promote McDonald's fast service

Hi ! I am Chief Happiness Officer at McDonalds

NEW PRODUCT LAUNCH

.Premium spicy chicken sandwich.

.Asian Salad.

NEW PRODUCT LAUNCH

.Drinkable breakfast enriched like yoghurt.

.Mc Nuggets (launched in India recently).

McDonalds Jumbo King Pizza hut

Mc Aloo Tikki - 20 Regular Vada Pav - 7 Simple Veg pizza-195

Mc Veggie - 45 Brown Bread Vada Pav-10 Veggie Supreme -345

Mac Chiken Maharaja-99 Butter Vada Pav - 10 Chicken Supreme-360

Value Meal - Chollee vada Pav - 13 Garlic bread platter-90

Happy Meal- Cheese Vada Pav - 16 Soup’s-45 to 80

French fries-38 Schezwan vada pav - 15 Pasta’s-110

Cold Coffee-39 Lassi - 10 Pepsi/7up/Mirinda -40

Iced tea - 25 Mango Lassi - 15 Pizza hut –Royale-80

Soft Serve - 20 Pepsi - 10 Almond Praline-45

PARAMETERS MCDONALD’S

SUBWAY

DOMINO’S

PIZZA HUT

KFC NIRULA’S

TOTAL MEAN

1. VALUE FOR MONEY 8.80 9.04 8.73 9.18 9.18 7.70 52.63

2. EASILY ACCESSIBLE 9.00 8.76 8.50 9.27 8.29 7.79 51.61

3. OVERALL AMBIENCE

9.16 8.60 8.35 9.24 8.92 8.03 52.30

4.HOSPITALITY OF STAFF

9.12 8.60 8.46 8.93 8.55 7.70 51.36

5. SPECIAL OFFER 8.80 8.24 8.38 8.80 8.92 7.60 50.75

6.STANDARDISATION OF F&S

9.24 8.68 8.46 8.84 8.84 8.41 52.47

7. QUALITY OF FOOD 9.88 8.80 9.00 8.87 8.55 7.98 53.08

8. TIME TAKEN TO PROCESS THE ORDER

9.56 8.72 8.88 8.30 8.59 7.75 51.80

9. VARIETY IN MENU 8.81 8.19 8.38 8.53 8.30 8.35 50.56

10. IS THE MENU DISPLAYED WELL

9.20 8.40 8.42 8.37 8.66 8.65 51.70

11. ARE VEG & NON-VEG ITEMS ARE DIFFERENTIATED

9.44 8.24 8.69 8.59 9.10 8.65 52.71

12. CLEANLINESS 9.64 8.65 8.77 9.45 9.17 8.57 54.25

CORPORATE STRATEGIES

To make food fast

Low cost

International expansion

Financial Managemen

t

INCOME STATEMENT In millions

2008 2007 2006

REVENUES

Sales by Company-operated restaurants 16,560.90 16,611.00 15,402.40

Revenues from franchised restaurants 6,961.50 6,175.60 5,492.80

Total revenues 23,522.40 22,786.60 20,895.20

OPERATING COSTS AND EXPENSES 17,079.50 18,907.60 16,462.20

Total operating costs and expenses 17,079.50 18,907.60 16,462.20

Interest expense– 12.3%, 6.9% and 5.4% 522.6 410.1 401.9

Nonoperating (income) expense, net (77.6) (103.2) (123.3)

Gain on sale of investment (160.1) -

Income from continuing operations 6,158.00 3,572.10 4,154.40Provision for income taxes@ 30%, 34.6%, 31% 1,844.80 1,237.10 1,288.30

Net Income from continuing operations 4,313.20 2,335.00 2,866.10

Income from discontinued operations 60.1 678.1

Net income 4,313.20 2,395.10 3,544.20

Balance Sheet In millions

ASSETS Dec-08 Dec-07 Dec-06

Current assets

Cash and equivalents 2,063.40 1,981.30 2128.1

Accounts and notes receivable 931.2 1,053.80 806.9

Inventories, at cost 111.5 125.3 112.4

Discontinued operations 194.7

Assets of businesses held for sale 1631.5

Prepaid expenses and other current assets 411.5 421.5 318.6

Total current assets 3,517.60 3,581.90 5192.2

Other assets

Investments in and advances to affiliates 1,222.30 1,156.40 1035.4

Goodwill 2,237.40 2,301.30 2073.6

Miscellaneous 1,229.70 1,367.40 1235.2

Total other assets 4,689.40 4,825.10 4344.2

Property and equipmentProperty and equipment, at cost 31,152.40 32,203.70 29722.9

Accumulated depreciation and amortization -10,897.90 -11,219.00 -10284.8

Net property and equipment 20,254.50 20,984.70 19438.1

Total assets 28,461.50 29,391.70 28974.5

LIABILITIES AND SHAREHOLDERS’ EQUITY In millions

Current liabilities Dec-08 Dec-07 Dec-06

Notes payable 1,126.60

Accounts payable 620.4 624.1 668.7

Income Tax 241.9

Other taxes 252.7 248 203.2

Accrued interest 173.8 148.4 135

Accrued payroll and other liabilities 1,459.20 1,486.90 1324.5

Current maturities of long-term debt 31.8 864.5 17.7

Liabilities of businesses held for sale 273.8

Discontinued operations 86.8

Total current liabilities 2,537.90 4,498.50 2951.6

Long-term debt 10,186.00 7,310.00 8389.9

Other long-term liabilities 1,410.10 1,342.50 1098.4

Deferred income taxes 944.9 960.9 1076.3

Shareholders’ equity 13,382.60 15,279.80 15458.3

Total liabilities and shareholders’ equity 28,461.50 29,391.70 28974.5

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2005 2006 2007 2008

Net Income

Net Income

Cash Generated by Operation

0

1

2

3

4

5

6

7

2006 2007 2008

Figures are in $

in bil

lion

Cash returned to shareholders

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

6

2006 2007 2008

Figures are in$

In Bi

llion

19.520

20.521

21.522

22.523

23.5

In Billion

2006 2007 2008

Figures are in $

Revenue

cumulative shareholders' return

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008

Mc Donald

S & P 500 Index

DJIA

Revenue from countries

8078

99234231

1290

U.S.

Europe

APMEA

Other countries & corporates

Market Cap

MCD, 59.48

BKC, 2.3

YUM, 16.1

DRI, 4.35

Starbucks, 13.72

Revenue

22.56

2.55

10.9

MCD

BKC

YUM

Net Income

4.25

0.1921.01

0

1

2

3

4

5

MCD BKC YUM

Net Income

Employees

400000

41000 50400

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

MCD BKC YUM

MCD

BKC

YUM

Earning Per Share

3.772

1.402

2.094

0 0.5 1 1.5 2 2.5 3 3.5 4

EPS

MCD

BKC

YUM

0

5

10

15

20

25

30

35

40

MCD BKC YUM

37.5533.13

24.9

In Percent

Gross Margin

0.550.67

1

1.51.67

0

0.5

1

1.5

2

2004 2005 2006 2007 2008

In Us dollar Per Share

Dividend Decared

2008 2007 2006

Current Ratio 1.4 1.073 1.8

Debt/Equity ratio 0.76 0.50 0.54

Liquid Ratio 1.2 0.70 1.65

Gross Margin 37.55% 33.13% 24.90%

ROI after tax 36.25% 27.68% 37.35%

Awards &

Achievement

Push-excel corporate partner award,

Corporate achievement and image award,

Nullities corporate award,

Corporate vision award,

The circle of inclusion award.

The halal journal awards 2008

Hall of fame award

Corporate citizenship award

Vince nichols memorial award

Mcdonald's UAE achievements awarded by

mcdonald's corporation

CFA presents inaugural lifetime achievement

award at 2008 recognition awards luncheon

Most Respected Company' for four consecutive years, 2003-2007 in the Food Services sector, by Businessworld

Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings India Ltd.

Retailer of the Year' Award for catering services, 2004-2006 at the Images Retail Awards.

The 'Most Preferred Fast Food Outlet' 2006 & 2007 by Awaaz Consumer Award, hosted by CNBC.

Star Retailer - The Consumer Way, Food Services Retailer' of the Year 2006 & 2007, by Franchise India

Amity Corporate Excellence Award'-in 2007 & 2008

McDonald's India - A decade of quality service

Received national recognition for diversity.

Push-excel corporate partner award.

Corporate achievement and image award.

Nullities corporate award.

Corporate vision award.

The circle of inclusion award.

•Take an active community

•Sponsor Ronald McDonald Houses: providing a home away from home for families of seriously ill children receiving treatment at nearby hospitals.

•Promote workforce diversity,

•Support education through student scholarships, teacher awards, and free instructional  resources.

•Adopt and encourage environmentally friendly practices.

•Provide nutritional information on McDonald's products to customers.

CSR

ENVIRONMENTAL ACHIEVEMENTS

AUDUBON society,

Conservation international,

Keep America beautiful,

The national recycling coalition,

The U.S. Environmental protection agency

Reason Of

Success ??? Globalization

DiversityEthics

Coming up with new schemes that suits to every pocket at any time.

McDonald’s undertakes expansion; plans 40 new stores at Rs 150 cr investment in 2009

Mc-delivery has been started so everyone can be at home and enjoy McDonald's food

McDonald’s the Future..!!

CONCLUSIONCONCLUSION

CUSTOMER PROFIT

GREATER PROFITBUT

Key Learning

Operational excellence

Leadership marketing

Innovation” is key of success.

Focus on quality management.

Customer is first ,fulfill their expectation .

Satisfaction of employees is necessary to increase the productivity.

‘Taking initiative’ leads to success.

Think global , act local

Shall we go to McDonalds???

Wait………

Before making any conclusions,

have a look……..

REFERENCES

www.mcdonalds.comwww.macdonaldsindia.netwww.scribd.com4P’S Business &MarketingThe marketing warfareTimes of India.Business standard

BYE BYE SEE YOU AT McDonald's

Mac Donald's believe..